A state government inquiry into sustainable employment for disadvantaged jobseekers has highlighted the barriers some people face in finding and retaining employment.
Economy and Infrastructure committee deputy chair Gary Blackwood said a number of regional hearings, including in Bendigo, helped form the inquiry's 70 recommendations.
"The most compelling evidence came from jobseekers we met, who shared their stories and highlighted the difficulties they have to overcome to find and retain work," Mr Blackwood said.
"We heard from jobseekers who experienced family violence, out of home care, substance dependence, disability and language difficulties."
Labour force data from the Australian Bureau of Statistics reveals there are about 70,000 more unemployed people in Victoria compared to this time last year.
The report's first recommendation is for the state government to lobby the federal government for an increase to the JobSeeker rate, once the $550 Coronavirus Supplement is phased out, to ensure jobseekers can meet their living expenses.
The $550 fortnightly supplement will reduce to $250 from September 25.
Federal member for Bendigo Lisa Chesters said the government needs to ensure welfare payments are adequate enough for people to survive.
"We are not talking about people living in luxury, we are talking about being able to afford the basics," Ms Chesters said.
"The government should raise the JobSeeker rate so people can pay their rent, support themselves and look for meaningful work."
The report said a combination of personal and work-related barriers exist for people who struggle to find and retain work.
These include poor literacy and numeracy, limited networks, no private transport, housing stress and homelessness.
Mr Blackwood said the inquiry noticed common themes in all regions.
"These include the need to improve public transport, assist more people to attain their drivers licence and making education and training more accessible," he said.
The report was being finalised at the onset of the COVID-19 pandemic, with its economic impact expected to magnify the barriers to employment and make assisting jobseekers more complicated and urgent, committee chair John Eren said.
Anglicare Victoria regional director Francis Lynch said there is concern that once the government scales back its Coronavirus Supplement, people will return to poverty.
"We are really concerned a whole group of people in the community who are managing now, will start to feel the pinch in a few months times," Mr Lynch said.
Anglicare Victoria is preparing for the reduced subsidies by employing 88 people, including eight in the Loddon Mallee.
"We are going to have people doing financial support work and 55 staff in community support roles, connecting people facing financial hardship to food and accommodation services," Mr Lynch said.
"There are families that will be impacted in the next six to 12 months who have never had to reach out for help before and we want to be well positioned to respond to them."
Carer responsibilities were noted as a limiting factor to jobseekers retaining work.
ABS data shows that 72 per cent of primary carers in Australia are women.
The report cites Brotherhood of St Laurence head of work, economic security and social inclusion Melinda Moore, who explained women that cannot access affordable childcare have limited employment opportunities.
"Often women are coming to us saying, 'We really only want work between 10 and 2 because that is when the kids are at school', but that just totally limits what we can actually provide and find for them."
Ms Chesters said the federal government needs to do more than punish jobseekers with children.
"I believe childcare needs to be affordable for everyone and there needs to be greater opportunity for occasional care," the Bendigo MP said.
"The only service of occasional care in Greater Bendigo is the council run services.
"Most childcare centres, because of the fee structure and payment from the federal government, ask for people to sign up for a set number of days and hours, which isn't practical for people working a few casual shifts."
The report outlines three recommendations focused on childcare, including measures that encourage improved access to affordable childcare for jobseekers.